Precious metals traders need to be especially cautious ahead of tomorrow opening session, as the price spread between the Spot market and the Futures market is widening to record levels, signaling a massive price jump (GAP) right at the open.
🔸 While the spot market took a break due to the weekend, the Futures market remained active and broke out strongly. Gold Futures set a new peak at $5,050, and Silver Futures followed suit, hitting $105.69.
🔸 Currently, Spot Gold( $XAU ) is paused at $4,983 and Spot Silver($XAG ) at $103.26. This significant discrepancy creates immediate buying pressure as soon as the market reopens to close the gap with Futures prices.
🔸 There is a very high probability that the market will witness a Gap Up in the very first seconds to catch up with the Futures rally. This is particularly risky for Short positions held overnight or Pending Orders placed too close to the market price.
Facing the prospect of the market opening with a massive GAP, will you risk chasing the breakout immediately or patiently wait for the market to return and fill the GAP?
News is for reference, not investment advice. Please read carefully before making a decision.
